The Standard & Poor’s 500 Index rose following its first three-day slump since September, as gasoline and oil rallied while gold and silver slid. Emerging market stocks fell as a gauge of Chinese manufacturing missed estimates and the Federal Reserve said it may reduce stimulus.
Bonds of issuers worldwide from Morgan Stanley to the Spanish government have erased losses for 2013 as reports of the death of the three-decade bull market in the securities prove premature with the Federal Reserve maintaining its stimulus.
The creation of the Federal Reserve 100 years ago helped develop a new world of investing in which bond returns fell, and the start of its next century may also mark a new era in monetary policy making, says Deutsche Bank AG.
The dollar fell against the euro in the last month as negative data surprises out of the U.S. compared unfavorably with positive data surprises from the euro region, according to Deutsche Bank AG’s Jim Reid.
The cost of insuring corporate bonds against losses fell for the first time in four days in Europe amid signs U.S. lawmakers will reach a deal for a short-term increase in the debt ceiling and avoid default.
European stocks rose to a six-month high this week as the Federal Reserve announced another round of bond purchases to boost the economy, offsetting renewed concern that some European countries won’t be able to repay their debts.
Speculative-grade bond yields in Europe dropped to the lowest in more than two months as issuance stalls in August. The only high-yield bond sold this month, from Greek gaming system developer Intralot SA, rallied.
Germany’s government bonds rose for the first time in three days as investors weighed what Federal Reserve Chairman Ben S. Bernanke will say about the central bank’s asset-purchase program at a press conference today.